US Economy and Credit Markets Ended March 9, 2018

 
Investors were uneasy after a multitude of geopolitical events grabbed headlines last week. Treasury yields dropped Monday in the wake of the Italian election and continued uncertainty surrounding trade rhetoric out of Washington. The unrest following the resignation of economic advisor Gary Cohn along with European Central Bank President Mario Draghi's dovish statements drove Treasury yields even lower as investors fled equities. After much anticipation, President Donald Trump signed off on tariffs for steel and aluminum late Thursday with the terms softening the impact for U.S. neighbors Canada and Mexico. Treasury yields bounced back Friday after better than expected February nonfarm payrolls data. The U.S. economy added 313,000 jobs in February, well above the consensus of 205,000 and the largest increase in 19 months. This comes after the February ADP employment change beat consensus estimates by 35,000 jobs on Wednesday. The U.S. economy reported strong job growth despite average hourly earnings growth. Major economic reports (related consensus forecasts, prior data) for the upcoming week include: Tuesday: February CPI MoM (0.2%, 0.5%); Wednesday: March 9 MBA Mortgage Applications (N/A, 0.3%), February Retail Sales Advance MoM (0.3%, -0.3%), February PPI Final Demand MoM (0.1%, 0.4%); Thursday: March Empire Manufacturing (15.0, 13.1), March 10 Initial Jobless Claims (225k, 231k); Friday: February Housing Starts (1288k, 1326k), February Industrial Production MoM (0.3%, -0.1%), March Preliminary University of Michigan Sentiment (99.0, 99.7).
Posted on Monday, March 12, 2018 @ 8:52 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.